Our exposure to market risk is principally confined to our cash, cash
equivalents and marketable securities. We invest our cash, cash equivalents and
marketable securities in securities of the U.S. government and its agencies and
in investment-grade, highly liquid investments consisting of commercial paper,
bank certificates of deposit and corporate bonds, all of which are currently
invested in the U.S. and are classified as available-for-sale. We place our cash equivalents and marketable
securities with high-quality financial institutions, limit the amount of credit
exposure to any one institution and have established investment guidelines
relative to diversification and maturities designed to maintain safety and
liquidity.

Based on a hypothetical ten percent adverse movement in interest rates,
the potential losses in future earnings, fair value of risk-sensitive financial
instruments, and cash flows are immaterial, although the actual effects may
differ materially from the hypothetical analysis.

Our exposure to market risk is principally
confined to our cash, cash equivalents and marketable securities. We invest our
cash, cash equivalents and marketable securities in securities of the U.S.
government and its agencies and in investment-grade, highly liquid investments
consisting of commercial paper, bank certificates of deposit and corporate
bonds, all of which are currently invested in the U.S. and are classified as
available-for-sale. We place our cash equivalents and marketable securities
with high-quality financial institutions, limit the amount of credit exposure
to any one institution and have established investment guidelines relative to
diversification and maturities designed to maintain safety and liquidity.

Based on a hypothetical ten percent adverse
movement in interest rates, the potential losses in future earnings, fair value
of risk-sensitive financial instruments, and cash flows are immaterial,
although the actual effects may differ materially from the hypothetical
analysis.

Our exposure to market risk is principally
confined to our cash, cash equivalents and marketable securities. We invest our
cash, cash equivalents and marketable securities in securities of the U.S.
government and its agencies and in investment-grade, highly liquid investments
consisting of commercial paper, bank certificates of deposit and corporate
bonds, all of which are currently invested in the U.S. and are classified as
available-for-sale. We place our cash equivalents and marketable securities
with high-quality financial institutions, limit the amount of credit exposure
to any one institution and have established investment guidelines relative to
diversification and maturities designed to maintain safety and liquidity.

Based on a hypothetical ten percent adverse
movement in interest rates, the potential losses in future earnings, fair value
of risk-sensitive financial instruments, and cash flows are immaterial,
although the actual effects may differ materially from the hypothetical analysis.

Our exposure to
market risk is principally confined to our cash, cash equivalents and
marketable securities. We invest our cash, cash equivalents and marketable
securities in securities of the U.S. government and its agencies and in
investment-grade, highly liquid investments consisting of commercial paper,
bank certificates of deposit and corporate bonds, all of which are currently
invested in the U.S. and are classified as available-for-sale. We place our
cash equivalents and marketable securities with high-quality financial
institutions, limit the amount of credit exposure to any one institution and
have established investment guidelines relative to diversification and
maturities designed to maintain safety and liquidity.

Based on a
hypothetical ten percent adverse movement in interest rates, the potential
losses in future earnings, fair value of risk-sensitive financial instruments,
and cash flows are immaterial, although the actual effects may differ
materially from the hypothetical analysis.

Our exposure to market risk is principally confined to our cash, cash equivalents and marketable securities. We invest our cash, cash equivalents and marketable
securities in securities of the U.S. governments and its agencies and in investment-grade, highly liquid investments consisting of commercial paper, bank certificates of deposit and corporate bonds,
all of which are currently invested in the U.S. and are classified as available-for-sale. We place our cash equivalents and marketable securities with high-quality
financial institutions, limit the amount of credit exposure to any one institution and have established investment guidelines relative to diversification and maturities designed to maintain safety and
liquidity.

Based
on a hypothetical ten percent adverse movement in interest rates, the potential losses in future earnings, fair value of risk-sensitive financial instruments, and cash
flows are immaterial, although the actual effects may differ materially from the hypothetical analysis.

49

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

Our exposure to market risk is principally confined to our cash, cash equivalents and marketable securities. We invest our cash, cash equivalents and marketablesecurities in securities of the U.S. governments and its agencies and in investment-grade, highly liquid investments consisting of commercial paper, bank certificates of deposit and corporate bonds,all of which are currently invested in the U.S. and are classified as available-for-sale. We place our cash equivalents and marketable securities with high-qualityfinancial institutions, limit the amount of credit exposure to any one institution and have established investment guidelines relative to diversification and maturities designed to maintain safety andliquidity.

Basedon a hypothetical ten percent adverse movement in interest rates, the potential losses in future earnings, fair value of risk-sensitive financial instruments, and cashflows are immaterial, although the actual effects may differ materially from the hypothetical analysis.

Our exposure to market risk is principally confined to
our cash, cash equivalents and marketable securities. We invest our cash, cash equivalents and marketable
securities in securities of the U.S. government and its agencies and in
investment-grade, highly liquid investments consisting of commercial
paper, bank certificates of deposit and corporate bonds, all of which are
currently invested in the U.S. and are classified as available-for-sale. We place our cash equivalents and marketable
securities with high-quality financial institutions, limit the amount of credit
exposure to any one institution and have established investment guidelines
relative to diversification and maturities designed to maintain safety and
liquidity.

Based on a hypothetical ten percent adverse movement
in interest rates, the potential losses in future earnings, fair value of
risk-sensitive financial instruments, and cash flows are immaterial, although
the actual effects may differ materially from the hypothetical analysis.

Our
exposure to market risk is principally confined to our cash, cash equivalents
and marketable securities. We invest our
cash, cash equivalents and marketable securities in securities of the U.S.
governments and its agencies and in investment-grade, highly liquid
investments consisting of commercial paper, bank certificates of deposit and
corporate bonds, all of which are currently invested in the U.S and are
classified as available-for-sale. We
place our cash equivalents and marketable securities with high-quality
financial institutions, limit the amount of credit exposure to any one
institution and have established investment guidelines relative to
diversification and maturities designed to maintain safety and liquidity.

Based
on a hypothetical ten percent adverse movement in interest rates, the potential
losses in future earnings, fair value of risk-sensitive financial instruments,
and cash flows are immaterial, although the actual effects may differ
materially from the hypothetical analysis.

Our exposure to market risk is principally confined to
our cash, cash equivalents and marketable securities. We invest our cash, cash equivalents and
marketable securities in securities of the U.S. governments and its agencies
and in investment-grade, highly liquid investments consisting of
commercial paper, bank certificates of deposit and corporate bonds, all of
which are currently invested in the U.S and are classified as
available-for-sale. We place our cash
equivalents and marketable securities with high-quality financial institutions,
limit the amount of credit exposure to any one institution and have established
investment guidelines relative to diversification and maturities designed to
maintain safety and liquidity.

Based on a hypothetical ten percent adverse movement
in interest rates, the potential losses in future earnings, fair value of
risk-sensitive financial instruments, and cash flows are immaterial, although
the actual effects may differ materially from the hypothetical analysis.

The Companys exposure to market risk is principally
confined to its cash, cash equivalents and marketable securities. We invest our cash, cash equivalents and
marketable securities in securities of the U.S. government and its agencies and
in investment-grade, highly liquid investments consisting of commercial
paper, bank certificates of deposit and corporate bonds, all of which are
currently invested in the United States and are classified as
available-for-sale. We place our cash
equivalents and marketable securities with high-quality financial institutions,
limit the amount of credit exposure to any one institution and have established
investment guidelines relative to diversification and maturities designed to
maintain safety and liquidity.

Based on a hypothetical ten percent adverse movement
in interest rates, the potential losses in future earnings, fair value of
risk-sensitive financial instruments, and cash flows are immaterial, although
the actual effects may differ materially from the hypothetical analysis.

The Companys exposure to market risk is principally
confined to its cash, cash equivalents and marketable securities. We invest our
cash, cash equivalents and marketable securities in securities of the U.S.
governments and its agencies and in investment-grade, highly liquid
investments consisting of commercial paper, bank certificates of deposit and
corporate bonds, all of which are currently invested in the U.S and are
classified as available-for-sale. We place our cash equivalents and marketable
securities with high-quality financial institutions, limit the amount of credit
exposure to any one institution and have established investment guidelines
relative to diversification and maturities designed to maintain safety and
liquidity.

Based on a hypothetical ten percent adverse movement
in interest rates, the potential losses in future earnings, fair value of
risk-sensitive financial instruments, and cash flows are immaterial, although
the actual effects may differ materially from the hypothetical analysis.

The Companys exposure to
market risk is principally confined to its cash, cash equivalents and
marketable securities. We invest our cash, cash equivalents and marketable
securities in securities of the U.S. governments and its agencies and in
investment-grade, highly liquid investments consisting of commercial paper,
bank certificates of deposit and corporate bonds, all of which are currently
invested in the U.S and are classified as available-for-sale. We place our cash
equivalents and marketable securities with high-quality financial institutions,
limit the amount of credit exposure to any one institution and have established
investment guidelines relative to diversification and maturities designed to
maintain safety and liquidity.

Based on a hypothetical
ten percent adverse movement in interest rates, the potential losses in future
earnings, fair value of risk-sensitive financial instruments, and cash flows
are immaterial, although the actual effects may differ materially from the
hypothetical analysis.

The Companys exposure to market risk is principally
confined to its cash, cash equivalents and marketable securities. We invest our cash, cash equivalents and
marketable securities in securities of the U.S. governments and its agencies
and in investment-grade, highly liquid investments consisting of
commercial paper, bank certificates of deposit and corporate bonds, all of
which are currently invested in the U.S and are classified as
available-for-sale. We place our cash
equivalents and marketable securities with high-quality financial institutions,
limit the amount of credit exposure to any one institution and have established
investment guidelines relative to diversification and maturities designed to
maintain safety and liquidity.

Based on a hypothetical ten percent adverse movement
in interest rates, the potential losses in future earnings, fair value of
risk-sensitive financial instruments, and cash flows are immaterial, although
the actual effects may differ materially from the hypothetical analysis.

The Companys exposure to market
risk is principally confined to its cash, cash equivalents and marketable
securities. We invest our cash, cash
equivalents and marketable securities in securities of the U.S. governments and
its agencies and in investment-grade, highly liquid investments
consisting of commercial paper, bank certificates of deposit and corporate
bonds, all of which are currently invested in the U.S and are classified as
available-for-sale. We place our cash
equivalents and marketable securities with high-quality financial institutions,
limit the amount of credit exposure to any one institution and have established
investment guidelines relative to diversification and maturities designed to
maintain safety and liquidity.

Based on a hypothetical ten
percent adverse movement in interest rates, the potential losses in future
earnings, fair value of risk-sensitive financial instruments, and cash flows
are immaterial, although the actual effects may differ materially from the
hypothetical analysis.

The Companys exposure to
market risk is principally confined to its cash, cash equivalents and
marketable securities. We invest our
cash, cash equivalents and marketable securities in securities of the U.S.
governments and its agencies and in investment-grade, highly liquid investments
consisting of commercial paper, bank certificates of deposit and corporate bonds,
all of which are currently invested in the U.S and are classified as
available-for-sale. We place our cash
equivalents and marketable securities with high-quality financial institutions,
limit the amount of credit exposure to any one institution and have established
investment guidelines relative to diversification and maturities designed to
maintain safety and liquidity.

Based on a hypothetical
ten percent adverse movement in interest rates, the potential losses in future
earnings, fair value of risk-sensitive financial instruments, and cash flows
are immaterial, although the actual effects may differ materially from the
hypothetical analysis.